With the economy growing and earnings on the rise, stocks could head higher in coming months. Market strategists like technology and industrials, but not utilities. Who's afraid of the Fed?

"The circulation of confidence is better than the circulation of money," James Madison, the fourth U.S. president, famously said.

These days, both are circulating freely, courtesy of the loose-money policies of the Federal Reserve, which has made it a fine time to own stocks. The market, as represented by the Standard & Poor's 500, has risen 14.5% year-to-date, and Wall Street's investment strategists see more gains...